efficacy* * The capacity to produce a desired or intended result
A N N UA L R E PO R T 2 014
“Every child deserves a seat at the table of life.” CHRISTEL DEHAAN
Founder - Christel House South Africa
Our purpose... to help children break the cycle of poverty and become contributing members of society.
Contents NPO Number: 017-044 NPO Christel House South Africa is a registered Non-Profit Organisation in terms of Section 18A of the SA Income Tax Act 58 of 1962. Christel House is an accredited Level 2 B-BBEE contributor. B-BEE Certificate Number: ADJGEN/171214/01
CEO’s Report
2
How You Can Help
20
Efficacy Study
4
Social Services Report
22
8
Giving Back
24
Principals’ Report
College & Careers Programme
13
Chairman’s Statement
The Christel House Model
15
Financial Report
Academic Results
16
Map of Communities Served
26
28 32 Page 1
CEO’s Report
teamwork:
After 30 years in the corporate sector, I found joining Christel House last year especially meaningful. Energised from day one by the staff’s passion to end the cycle of poverty, I count myself fortunate to be a part of this amazing organisation.
After matric, learners participate in our unique College and Careers Programme, which supports, mentors and guides alumni through university, college or apprenticeships, and into gainful employment.
Key to the success of Christel House is its holistic model, which develops the “total person”. Our first challenge is to help learners build the character and self-esteem necessary to resist the endemic social pressures in their communities. This starts in Grade R and continues throughout the educational process. Next we must ensure that every child stays in school and graduates matric. And finally, every Christel House graduate is expected to be gainfully employed.
Last year’s Annual Report measured our “Impact” on learners, their families and communities. This year we examine the “Efficacy” of our model. To this end we commissioned EY (formerly Ernst & Young) to conduct a study to test the effectiveness of the Christel House model. We believe it provides datadriven evidence that our programs are making a profound difference.
From an early age, learners are encouraged to envision their futures. Our remarkable educators teach relevant skills for today’s economy – collaboration and teamwork, problem solving, complex communication and critical thinking – to give students the tools and “grit” to succeed in the workplace.
Christel House Grade 2’s making posters for a Women’s Day event. Collaboration and communication are fundamental to the development of the “total” person.
Today, as we review our “Efficacy” from 2014, there is much of which to be proud. But a great deal still remains to be done. Ultimately the success of Christel House relies on the strength of our model, dedication of our teachers and support of our donors. With your help, we can confront poverty and transform lives. I thank you most warmly for helping us fulfil our mission.
NICKY SHERIDAN
Chief Executive Officer
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THE EFFICACY STUDY
Christel House commissioned EY to test the efficacy of its transformative education model. Using school records, interviews, surveys and benchmark data from national institutions and data repositories, this is a summary of what they found.
KEY FINDINGS - Effect Christel House significantly outperforms public schools in Mathematics and English at Grade 3, 6
KEY FINDINGS - Cause Research shows that the superior performance of Christel House is largely attributable to:
Its holistic model of education.
and 9 levels and achieves markedly higher NSC pass rates. More importantly, Bachelor admission rates are significantly better - 64% vs the Western Cape public school average of 39% and the national public school average of 28%.
The focus on employability fostered throughout their schooling and in particular the College and Careers Programme after graduation.
Christel House graduates are much more likely to be enrolled in tertiary institutions
The passion and commitment of the Christel House educators.
(40% vs the national average of 16%), are less likely to drop out and are much more likely to find employment than those coming from the public school sector - 84% vs the 32% Western Cape youth employment average.
Christel House clearly contributes to greater socio-economic opportunity for the communities it serves, providing both learners and their families with a better sense of self, hope and safety.
The EY report goes on to recommend further investment and expanded partnerships to develop the critical College and Careers Programme further and continued focus on maths and science education - areas of skills shortage nationally - to build on the successes already achieved and further enhance quality employability.
Based on their accomplishments to date, Christel House children are expected to have opportunities for higher lifetime earnings and increased socio-economic impact. Christel House learners are on a trajectory toward self-sufficiency. Page 4
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EFFICACY...
Our learners are born into abject poverty. They arrive in Grade R speaking no English and with many developmental deficits. Their families cannot afford school fees or transport and sometimes not even food..
Egoli Informal Settlement 3500 Households 90% Unemployment Social Problems: Chronic poverty, food insecurity, substance abuse, violence, unsafe housing, poor sanitation, disease. Page 6
SIMPLIFIED
95%
of Christel House graduates are either working, studying... or doing both.
Sibusiso Mandongana Currently in her last semester for a BSC Degree in Medical Biosciences, Sibusiso is also pursuing an internship and works as a tutor at the University of the Western Cape. She’s building to a career in Forensic Science.
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Principals’ Reports Senior School Report To each individual and every organisation that supported Christel House last year, thank you. Your support enables us to attract the most talented teachers, provide excellent programs and technology, and deliver life-changing results.
Big NEWS:
Doors Open at "the Farm" Last September we opened the doors to our Matric Study Farm, a dedicated home where Grade 12 learners live and study in a safe environment in the lead up to final exams.
For the past 5 consecutive years, Christel House has attained an impressive 100% matric pass rate. This year we again expect a 100% pass rate after one student retakes exams in April. Our goal was also to improve the quality of those passing marks. I am pleased to report that 64% of our matriculants earned a Bachelor’s pass with success in 11 of the 14 NSC subjects, including Physical Science. Impressive scores were also earned on the WCED systemic tests, with 86% of our Grade 9 learners passing the exam, and 73% passing the mathematics portion. A new strategy for exam preparation was piloted in September. We opened doors to “The Farm,” a dedicated facility where Grade 12 learners can prepare for final exams. Supervised by live-in teachers, students have access to safe accommodations and a conducive study environment. It has been an unqualified success. Technology is an integral part of effective learning. Dell, a key Christel House partner, empowers our teachers and learners by providing them with the latest ICT technology. And Microsoft, through their Innovative Schools programme, helps our educators innovate, share and scale best practices. With your support, Christel House is committed to reversing inequality and giving impoverished children the tools they need to thrive.
RONALD FORTUNE Principal - Christel House Secondary School
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Grade 3: interactive Learning Invaluable partnerships with Dell and Microsoft enable our educators to develop and share new methodologies that ensure our learners quickly make up early learning deficits and go on to out-perform the national and Western Cape averages for literacy and numeracy across all grades.
Junior School Report There is an enormous need for programmes like ours across South Africa. Each year over 200 applicants compete for only 60 seats in our grade R classrooms. All these children are deserving, but we choose those whose needs are greatest. Upon arriving at Christel House everything is new - the English language, teachers, toilets, uniforms, desks, books, canteen, grass, a playground - the list goes on. It is quite overwhelming - in a wonderful sort of way. Over the next two weeks, our firsttimers learn structure through repetitive procedural learning activities. They practice toilet drills, line-up protocol, dining etiquette and classroom rules. Teachers’ assistants translate for the children, who as yet have no English skills, and soon they begin to feel a sense of safety and belonging. Grade R learners develop gross and fine motor skills through exercises that build strength and coordination. Also taught are Life Skills, like
making good choices and working well with others. In Grade 1, the Character Building Programme expands. Learners perform drama, song and dance at weekly assemblies and in the process assimilate our core values of Respect, Responsibility, Integrity and Independence. A values-based curriculum equips students with character and confidence, traits that will give them a competitive advantage later in life. Starting in Grade 7, the Junior Leadership Programme strengthens important qualities like listening skills, teamwork, trust and communication. Learners practice leadership roles through participating in the Peer Mediation programme, hosting international guests, organising sporting events and speaking publicly at assemblies. With your continued support, more children will get the chance to break free from a life of abject poverty and become meaningful and productive citizens of South Africa. CAROL KRIEL
Principal - Christel House Primary School
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The College & Careers Programme
Fulfilling our mandate... To realise our vision of breaking the cycle of poverty, Christel House graduates must secure meaningful employment. Matric is a stepping stone to the final phase of learner development – the College and Careers Programme, which supports graduates until they are firmly established in the workforce. Students going on to tertiary studies receive assistance in securing bursaries and get a monthly stipend to cover transport to college and one meal daily. Regular contact with the institutions’ lecturers helps Christel House monitor learners’ progress. When intervention is necessary, counselling and mentoring are arranged. Christel House has built a diverse network of prospective employers – companies that offer learnerships, apprenticeships and full-time employment. We continually explore and expand partnerships with new employers, because enabling students to pursue their passions enhances prospects of career success. Career exploration starts in primary school. Each learner maintains a Career Portfolio which includes teachers’ feedback about individual strengths and challenges. This allows Christel House to help students plan for a career path that leverages their unique aptitudes. At Career Days guest speakers discuss their varied professions. Open days at tertiary institutions expose students to the campus environment. Jobshadowing and job-readiness workshops give students the opportunity to visualize themselves in the workplace.
Khanyo Bavuma Christel House valedictorian for 2013, Khanyo is studying for a BSC in Mathematical and Statistical Sciences. He achieved distinctions in 3 of the 4 modules in his first semester. He hopes to join Statistics SA - a valued Christel House partner - after completing his honours degree. Page 12
Through the College and Careers Programme, Christel House stays the course until our graduates become self-sufficient, productive South African citizens. It is thanks to our partners – the institutions, companies and individuals who share our vision – that such commitment is possible. Thank you!
CHRIS HANSON College & Careers Programme Manager
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true grit
Character Building is a cornerstone of the Christel House model. It is reinforced throughout the school programme.
“A child’s success cannot be measured by IQ scores, standardized tests or quizzes alone. Success also depends on young people developing character and ‘grit’!” Warren Jacobs - Dean of Students
THE
CHRISTEL HOUSE M O D E L
Leadership Life Skills Motor Skills Over 200 families apply for the 60 places available in Grade R. We allocate places to those most in need.
Life Skills English
Peer Counselling
Char acter Building Public Speaking
Numeracy
Early Leader ship
Creative play
Career Guidance
Sex / Gender Education Career & Success Planning
Higher Education Vocational Training Bursary Applications Interview Training
EMPLOYED ACTIVE CITIZENS
Learnerships Job Placement
Giving Back
Giving Back
Giving Back
A holistic programme delivering
a values-based Page 14
curriculum. Page 15
ACADEMIC EFFICACY
EMPLOYMENT EFFICACY The College & Careers Programme supports Christel House graduates until they are gainfully employed. Of the 191 graduates from 2009 to Year End 2014:
100%
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Matric pass rate, 6 years running
57
are at university
64%
Bachelor pass rate
33
are at technical college
98%
Year-to-year student retention rate
24
are in learnerships
98%
Attendance rate amongst students and teachers
68
are gainfully employed
100%
Students receiving breakfast, lunch and a snack daily
100%
Students transported to and from school each day
9 95%
are still to be placed
of graduates are either working, studying or doing both
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The Holistic Cost per Learner
R43 207 *Budgeted Numbers:
EDUCATION R 25 901 (60%)
TRANSPORT LEARNING MATERIAL, UNIFORMS & SUPPORT SERVICES
R 3 010
2 Trips per day plus extra-curricula activities
R 4 488
NUTRITION
COLLEGE & CAREERS PROGRAMME
2 Meals and a snack per day
R 710
R 3 152
OUTREACH & Community Upliftment
R 265
HEALTH CARE & Social Services
R 1 694
* All general and administrative expenses are
SPORTS & Extramural Activities
R 453 Page 18
how y o u c a n help
FACILITIES R 3 534
covered by our Founder, so that every rand of your donation directly benefits the children. Page 19
H o w yo u c a n h e l p. . .
A DOPT - A - L EA R N E R
Contribute to our learners’ nutrition R20 a day - or sponsor a vegetable garden.
Sponsor a learner’s books and stationary... or sponsor a class.
Visit us and see how you can change a life by sponsoring the costs - in part or total - of one learner’s schooling.
Sponsor a learner’s travel costs - R25 a day - or sponsor a bus.
t
T RANS P ORT
t
LEARNING MATERIALS
t
M E A LS
IN-KIND DONATIONS
t
Library books, equipment, stationary - what you can give, we can use.
t
t
t
Your expertise can help our learners find their place in the world.
Teach music or coach a sport - your time and skills help develop new talents .
TECHNOLOGY PARTNERSHIPS Join DELL and Microsoft in helping us deliver innovative learning, giving our students the technology skills they need to compete.
t
BECOME A MENTOR
V O LUN TE E R
S P ECIAL EV ENTS
t
Help sponsor one of our fundraising events.
U N I F O R MS Sponsor uniforms, shoes, or help fund our laundry service.
t We support our graduates until they find employment. Help fund our graduates in tertiary institutions.
I N T ER N SH I PS & J OB S Help our graduates - who have achieved so much become contributing members of society.
t
t
BURSARIES & GRANTS
FINANCIAL SUPPORT
t S P O RTS FAC I L I TI ES
t
Sporting activities from netball to cricket, soccer to rugby are a big part of our extended school day. Help fund equipment, uniforms or our sports facilities. Page 20
Fulfil your charitable intentions with a gift specifically structured to reflect your wishes.
CONTACT US or visit www.christelhouse.givengain.org and click the Donate Now! link to make a donation. Page 21
Family and Community Upliftment
Social Services Report
Family & Community Upliftment Families from Freedom Park attend a weekend Good Parenting workshop
Social Services support is a unique and essential part of the Christel House model. In-house social workers, counsellors and nurses address student challenges immediately, rather than depending on the availability of thirdparty support. Our Dean of Students and Culture focuses on strengthening school culture, encouraging constructive behaviours and advancing community outreach and parental services. The Dean oversees the work of social workers, nurses, and counsellors to ensure best practices. Programmes and initiatives in the Social Services area are designed specifically to promote character development amongst learners so that they are equipped to become upstanding citizens and productive members of society. Christel House South Africa 2013 graduate, Khanyo, said it best. “In my community, Christel House students stand out above the others in terms of dress, conduct, behaviour and education. . . .The Christel House values will remain with me for the rest of my life.�
In 2014:
1 256 social and health interventions were conducted with learners and families to address challenges. These included medical exams and treatments, individual, family, and group counselling, telephonic contact, as well as court support and home visits.
215 home visits were conducted to assess home environments and counsel families.
2960 family members attended workshops teaching parenting and language skills, basic entrepreneurship, computer skills and hair-dressing.
WARREN R. JACOBS Dean of Students and Culture
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GIVING BACK All Christel House students participate in our Service Learning programme. Giving of their time through a number of community upliftment projects during the year teaches them to become active, community-minded citizens.
STUDENTS COMPLETED
25 Community Upliftment Projects
10 407 Hours of service learning 8
Communities received the benefits All Christel House parents are financially distressed and most cannot pay school fees. They gave back to the school in other ways in 2013.
PARENTS VOLUNTEERED
12Hours 000
1 495 Labour Days
455 Parents Volunteered last year
Parents contribute in a number ways: Escorting learners • Classroom assistants • Maintaining school books, uniforms and other property • Laundry services • Assisting supervision of excursions • Cleaning, sealing and painting school facilities Page 24
Active Citizens...
Christel House learners distribute food and clothing hampers to residents of Pooke se Bos Informal Settlement Page 25
Board of Directors
Chairman’s Statement We have concluded 2014 with another successful graduation in terms of students’ pass rate and bachelor’s eligibility. We measure our success relative to our own year on year performance and also against the same indices of a cross section of public and private schools. The metrics continue to show that the Christel House experience is a formula for success in preparing children to join the ranks of the employed or those in higher education. Considering the communities we serve this is more remarkable when you factor unemployment rates that are up to three times the published national unemployment rate. One of the most fundamental measures of success, commitment and efficacy is attendance and retention. Of all Christel House admissions over the last 12 years, 93% are still in school. The attendance of both learners and teachers is an impressive 98%. That equals more education to more children more of the time and a reason we stand out in our total results. Such performance is underpinned by the strength, dedication and passion of our faculty, principals and supporting staff. Social work, the College and Careers programme, nutrition, physical education and service learning are all requisite components of a complete child, they are all available at CHSA and that is why our graduates have a head start to break the cycle of poverty for themselves, their families and the broader community. The year we have just concluded saw the arrival of our new CEO Nicky Sheridan. We all look forward to the maturation and success of his plans to bring the school to the next level of operational excellence and financial sustainability. We said farewell at the beginning of the year to our fellow Board member Melvin King as he took his new role as the head of the Oprah Winfrey Leadership Academy. We welcome Claudia Manning and Mteto Nyati as our newest members to the board. We have a wonderful board of involved, caring and effective people, they help make this dream a reality. We had the privilege in 2014 of two visits from our founder Christel DeHaan as we hosted the Christel House Global Conference in February and then again when Christel attended our November board meeting. The magic that lights up the smiles of the children when she is on campus has to be seen to be understood. As a community I think we all know the challenges that beset the poorest children in South Africa, come visit our school or watch the videos that Nicky and the team distribute and witness the joy and accomplishment for yourself. Ask yourself what you can do to support our dream to reach as many deserving children as we can in our poorest communities in South Africa.
Stephen Ross
Christel DeHaan (USA)
Chairman Nominations Committee
Experience: Business, Marketing & Public Relations
Lulu Gwagwa Nominations Committee
Experience: Business and Finance
Shaun Lamont Audit Committee
Experience: Business, Finance, Infrastructure Development, Marketing & Public Relations
Experience: Business, Education, Fundraising, Marketing & Public Relations
Nicky Sheridan Experience: Business, Finance, Public Relations
Brian Stocks Audit Committee
Experience: Business, Finance, Infrastructure Development
Wayne Grews
Elspeth Donovan
Audit Committee
Education Committee, Remuneration Committee
Experience: Business, Finance, Infrastructure Development, Marketing & Public Relations
Stewart Van Graan Experience: Business, Information, Communication and Technology, Marketing & Public Relations
Experience: Education, Social Development
Charles Abrahams Nominations Committee Remuneration Committee
Experience: Business, Governance and Law
* Claudia Manning and Mteto Nyati will join the Board in 2015
STEPHEN ROSS March 2015
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ABRIDGED FINANCIAL STATEMENTS For the year ended 31 December 2014
STATEMENT OF CHANGES IN EQUITY R Accumulated Surplus
Christel House South Africa once again achieved an unqualified audit report. The complete set of audited financial statements is available on our website:
www.sa.christelhouse.org.
Note
2014 R
2013 R
ASSETS
Current Assets Cash and cash equivalents Temporarily restricted funds Trade and other receivables
*
Total Assets
36 107 247
34 767 563
9 071 698 789 032 761 368 10 622 098
18 230 823 769 007 3 659 696 22 659 526
46 729 345
57 427 089
EQUITY AND LIABILITIES Equity Accumulated surplus Liabilities Current Liabilities Deferred income Temporarily restricted funds held Trade and other payables
Total Equity and Liabilities
34 727 999
34 727 999
Balance at 1 January 2014
1 232 087 35 960 086
1 232 087 35 960 086
(2 259 259)
(2 259 259)
33 700 827
33 700 827
Changes in equity Surplus for the year
Balance at 31 December 2014
Non-Current Assets Property, plant and equipment
33 700 827
*
35 960 086
9 483 902 789 032 2 755 584 13 028 518
18 439 614 769 007 2 258 382 21 467 003
46 729 345
57 427 089
STATEMENT OF CASH FLOWS Note
Cash flows from operating activities Cash receipts from donors Cash paid to suppliers & employees Cash (utilised by)/generated from operations Interest Income
Page 28
2014 R
2013 R
Revenue Operating Expenses Operating Surplus / (Deficit) Investment revenue
41 843 065 (45 070 169) (3 227 104) 967 845
38 220 145 (37 745 133) 475 012 757 075
Surplus / (Deficit) for the year
(2 259 259)
1 232 087
*
Net cash (to)/from operating activities
2014 R
2013 R
35 222 415 (40 679 824)
38 492 499 (37 299 914)
(5 457 409) 967 845 (4 489 564)
1 192 585 757 075 1 949 660
Cash flows to investing activities Purchase of property, plant, equipment Sale of property, plant and equipment Net cash to investing activities
(4 709 284) 39 723 (4 669 561)
(2 561 385)
Total cash movement for the year Cash at the beginning of the year
(9 159 125) 18 230 823
(611 725) 18 842 548
9 071 698
18 230 823
Total cash at the end of the year
STATEMENT OF COMPREHENSIVE INCOME
Total Equity
Balance at 1 January 2013 Changes in equity (Defecit) for the year
STATEMENT OF FINANCIAL POSITION
R
*
(2 561 385)
Note to Cash, Deferred Income and Cash Flow: *Due to the strengthening US dollar, Christel House International contributed 2015 operational funding in 2014
The audited financial statements were compiled in accordance with the International Financial Reporting Standards for Small to Medium Sized Entities and in the manner required by the Companies Act of South Africa 2008. The auditors were Henri Grove & Partners Registered Auditors, Bellville. Page 29
REVENUE
Audit & Risk Committee Report
Relationships between Christel House South Africa and our local and international partners remain strong. Despite continued global economic challenges, CHSA total revenue increased by 12% over the previous year.
South African Funding Local Contributions R 15 273 098 Investment Income
R
36%
967 845
2%
Investment Income
International Funding R 26 569 967 TOTAL REVENUE
R 42 810 910
62%
The Committee carried out its duties to stakeholders as required by the King Report and its own terms of reference in respect to the 2014 financial year. The Committee is satisfied that it has considered and discharged its responsibilities in accordance with its mandate and terms of reference during the year under review. We are satisfied with the improving trend in the results of the management’s assessment of its internal control and risk environments as confirmed by the combined assurance model implemented. The Committee formed the opinion that at the date of this report there were no material breakdowns in internal control, including financial control that would result in any material loss. The Committee reviewed and recommended the approval of the annual financial statements to the board.
Brian Stocks Chairperson - Audit & Risk Committee
International Funding US Contributions and Grants UK Contributions
Remuneration Committee Report
EXPENSES Overall costs increased by 19% this year, mostly due to facility improvements, an increased student count in the College and Career Programme, rising fuel costs and other inflationary pressures.
Costs unrelated to school programmes are kept at 12% or lower.
The Committee also reviewed and endorsed the company’s policy not to remunerate non-executive directors.
Lydia Dreyer CFO – Christel House South Africa
Operating Costs School Programme
R 40 624 399
Fundraising Costs
R
3 600 899
Management Costs
R
844 871
TOTAL EXPENDITURE
R 45 070 169
The Committee carried out its duties as required by the King Report and the Committee’s terms of reference to submit this report to stakeholders in respect of the 2014 fiscal year. The Committee reviewed the company’s general remuneration policy and specific packages for executive and senior management, educators and support staff.
Fundraising Costs
8%
2%
Management Costs
90% School Programme Costs
The remuneration strategy for management and the workforce at CHSA is designed to: 1. Attract and retain individuals with the ability, experience and skill to fulfill the mission of the organisation. 2. Incentivise employees to deliver sustained performance and appropriate risk management. 3. Provide market-competitive compensation packages. 4. Encourage behaviour consistent with CHSA values The Committee submits that it has considered and discharged its responsibilities in accordance with its mandate and terms of reference during the year under review.
Elspeth Donovan Chairperson – Remuneration Committee
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THE COMMUNITIES WE SERVE
Cape Town Langa 66km
Bokmakierie Kewtown 60km 60km
Pooke se Bos Settlement
Christel House Ottery
Zille-Raine Informal Settlement Phumlani Village Settlement
Manenburg 60km
Hanover Park - 30km Philippi 20 km Egoli Informal Settlement
Transporting 728 Students... in these locations... twice a day.
Springfield Informal Settlement
Delft 80km
Brown’s Farm 70km
Phola Park Settlement
McCluese Informal Settlement
Jim se Bos Settlement
Strandfontein 25 km
Mitchells Plain - 80km
Strandfontein Informal Settlements
F a l s e B a y Page 32
Khayelitsha
.............................................................................
On behalf of our learners, teachers and support staff, we would like to thank our partners and sponsors for their ongoing support of Christel House.
.............................................................................
Phone: +27 21 704 9406 / 7 / 8 Email: donor@sa.christelhouse.org Website: www.sa.christelhouse.org Banking Details:
NAME OF ACCOUNT: NAME OF BANK: TYPE OF ACCOUNT: ACCOUNT NUMBER: BRANCH CODE: SWIFT:
CHRISTEL HOUSE SOUTH AFRICA NEDBANK MONEY MARKET INVESTMENT ACCOUNT 1047 039 117 104 709 NEDSZAJJ
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